Cedar Fair Receives Price Target Boost After Strong Quarterly Results

Truist Securities's Michael Swartz raised their price target on Cedar Fair (NYSE: FUN) by 4.3% from $46 to $48 on 2024/02/16. The analyst maintained their Strong Buy rating on the stock.

The price target increase came on the heels of Cedar Fair's robust quarterly results, as Swartz delved into the company's Q4 and FY 2023 earnings report released on February 15, 2024. Despite facing challenges such as a calendar shift and adverse weather in Southern California, Swartz expressed optimism about the company's prospects for the year ahead, noting, "came away from the earnings call incrementally positive on the demand/cost backdrop for the year ahead."

In Q4 2023, Cedar Fair reported earnings per share (EPS) of $0.16, falling short of the Zacks Consensus Estimate of $0.24 and marking a 56.8% decline from Q4 2022. However, revenue for the quarter stood at $371.12 million, surpassing the Zacks Consensus Estimate by 1.64% and showing a 1.4% increase from the prior year. For FY 2023, the company posted an EPS of $2.42, down 55.6% from the previous fiscal year, with revenues marginally lower at $1.799 billion compared to $1.817 billion in FY 2022.

CEO Richard Zimmerman highlighted the company's resilience, stating, "the strength and resiliency of Cedar Fair’s business model was on full display." He emphasized the successful adaptation to market changes and operational adjustments that drove increased demand and improved operating margins in the latter half of 2023.

Following Swartz's updated price target, other analysts also revised their forecasts for Cedar Fair on February 16, 2024. B. Riley Securities's Eric Wold raised the price target to $52, maintaining a Strong Buy rating, while Stifel Nicolaus's Steven Wieczynski and KeyBanc's Robert Aurand both increased their price targets to $52, also retaining a Strong Buy rating on the stock.

Currently, all top-rated analysts unanimously recommend FUN as a Strong Buy or Buy, with no analysts suggesting a Hold or Sell position. The consensus forecast anticipates an EPS of $3.18 for the upcoming year, reflecting a projected 29.8% year-over-year increase.

Since the latest quarterly report, Cedar Fair's stock price has risen by 1.7%, though it remains down by 5.6% year-over-year, trailing behind the S&P 500, which declined by 22.4% over the same period.

Truist Securities analyst Michael Swartz, known for their expertise in the Consumer Cyclical sector, ranks in the top 6% of Wall Street analysts, with a solid track record of an average return of 15.2% and a win rate of 48.8%.

Cedar Fair, L.P., the operator of amusement parks in the U.S and Canada, boasts a diverse portfolio including renowned parks like Cedar Point and Kings Island. Founded in 1983 and headquartered in Sandusky, Ohio, Cedar Fair continues to attract positive analyst sentiment and investor interest amidst a challenging market landscape.

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